U.S. Trade Representative Robert Lighthizer should leave Section 230-like protections out of future trade deals, House Consumer Protection Subcommittee Chair Jan Schakowsky, D-Ill., said during a hearing Wednesday. She wrote a letter to Lighthizer last week, joining House Commerce Committee Chairman Frank Pallone, D-N.J., and ranking member Greg Walden, R-Ore., with the same request (see 1908060064).
US Trade Representative (USTR)
A U.S. Cabinet level position which serves as the President's primary representative, negotiator, and spokesperson regarding U.S. trade policy. The USTR heads the Office of the United States Trade Representative which develops and coordinates U.S. policy for international trade, commodities, and direct investments, as well as overseeing trade negotiations with other countries.
“Financial impacts” of the French digital services tax and DST “implications for the US tax base” worry the tech industry, posted international tax law expert Gary Sprague with Baker McKenzie in docket USTR-2019-0009. Sprague asked to testify for Amazon, Facebook, Google, Microsoft and others at the hearing Tuesday on the Office of the U.S. Trade Representative’s December finding that France’s DST discriminates against U.S. companies (see 1912030002). USTR is proposing to slap up to 100 percent retaliatory tariffs on 63 subheadings of French imports worth about $2.4 billion in 2018 customs value. Tech “strongly" backs the work of the Organisation for Economic Co-operation and Development to draft a “consensus solution” that would obviate the need for the French DST and similar other tax remedies that can harm U.S. interests, said Sprague. France's tax has “encouraged several other countries to pursue similar discriminatory taxes,” said Sprague, a member of the OECD technical advisory group studying the treatment of e-commerce revenue in tax treaties. The vast majority of the hundreds who have requested to testify are wine importers opposing the proposed tariffs on French goods. Written comments on USTR's proposed tariffs are due Monday. Post-hearing rebuttals are due Jan. 14.
The Office of the U.S. Trade Representative rightly concludes in its Trade Act Section 301 investigative report Monday (see 191202006) that France’s digital services tax (DST), enacted in July, discriminates against U.S. companies, said tech and business trade associations. USTR seeks comment by Jan. 6 in docket USTR-2019-0009 at regulations.gov on its proposal to slap up to 100 percent retaliatory tariffs on 63 subheadings of French imports worth about $2.4 billion in 2018 customs value, mainly cheese, beauty products, handbags and kitchenware. The French government didn’t comment Tuesday.
House Consumer Protection Subcommittee ranking member Cathy McMorris Rodgers, R-Wash., “largely” agrees the tech industry should have to earn its content liability protection. After Wednesday’s hearing on Section 230 of the Communications Decency Act (see 1910150058), she told reporters it’s important Congress finds the best way to ensure content is “managed appropriately.”
Of 140 tariff subheadings CTA urged the Office of the U.S. Trade Representative June 17 to remove from List 4, the association won 37 deferrals to Dec. 15 in key product areas like smartphones, laptops and tablets and PC monitors when the final lists were released Tuesday (see 1908130058). The rest face 10 percent levies when the duties on the newly configured List 4A take effect Sept. 1. JLab Audio didn't get reprieve now. CEO Win Cramer was hit like “a kick in the gut,” he emailed us. He's “unsure and confused” why USTR “decided at one point to agree with us” earlier that Bluetooth headphones didn’t belong on the tariffs list “and then turn course,” he said. USTR didn’t comment Wednesday.
About 10 comments from associations and companies that would be affected by France's digital services tax backed U.S. concern, many saying there's a discriminatory DST intent against American companies. Some told the Office of the U.S. Trade Representative in advance testimony that U.S. tariffs on French imports aren't the way to fix the problem. Sixteen filings in USTR-2019-0009 were posted through this week. A USTR hearing is set for Monday (see 1907150037).
Five of the top eight consumer tech product categories in terms of 2018 customs value temporarily escaped 10 percent List 4 Section 301 tariff exposure at least until Dec. 15 (see 1908130015), well after imports will have arrived for the peak holiday selling season, per Office of the U.S. Trade Representative documents released Tuesday. Bluetooth headphones, smartwatches, smart speakers and finished TVs from China face immediate 10 percent tariff exposure Sept. 1.
The tranche of tariffs the Trump administration Tuesday morning announced it will delay to Dec. 15 are the 10 percent List 4 tariffs on smartphones, laptops, videogame consoles and computer monitors. Earlier this morning, we incorrectly reported the tranche.
Questions abound about President Donald Trump’s decision Thursday to put 10 percent List 4 Section 301 tariffs into effect on Chinese imports Sept. 1. Since Trump can’t legally impose List 4 by tweets, all eyes will await the Office of the U.S. Trade Representative notice soon to be published in the Federal Register detailing which product categories, if any, are spared from the final duties.
The “same concerns” that led the Trump administration to remove smartwatches and fitness trackers from the List 3 Section 301 tariffs on Chinese imports in September “continue to apply” with the proposed fourth tranche, commented Fitbit in docket USTR-2019-0004. Imposing 25 percent tariffs would cause Fitbit “significant and unavoidable economic harm," it commented, dated Monday and posted Thursday.